News Trader

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Definition of 'News Trader'

A news trader is a person who trades stocks based on the news. They typically use technical analysis to identify stocks that are likely to be affected by upcoming news events. News traders often have a good understanding of the financial markets and are able to quickly assess the potential impact of news on stock prices.

There are a number of different ways that news traders can make money. One common strategy is to buy stocks in anticipation of positive news events and sell them after the news is released. Another strategy is to short sell stocks in anticipation of negative news events. News traders can also make money by trading options on stocks that are likely to be affected by news.

News trading can be a profitable strategy, but it is also a risky one. News traders need to be able to quickly assess the potential impact of news on stock prices and make decisions based on that information. They also need to be able to manage their risk carefully and avoid taking on too much risk.

Here are some of the risks associated with news trading:

* News traders can lose money if they make the wrong decisions about which stocks to trade.
* News traders can lose money if they do not properly manage their risk.
* News traders can lose money if they are not able to quickly assess the potential impact of news on stock prices.

Overall, news trading can be a profitable strategy, but it is important to understand the risks involved before you start trading.

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